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nlexa [21]
3 years ago
14

PLEASE HELP !!!!!! ​

Social Studies
1 answer:
iris [78.8K]3 years ago
4 0
B tell me if im wrong
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Drag each tile to the correct box. Arrange for the steps to show the effects of contractionary fiscal policy.
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<u>The correct order for the steps that show how contractionary fiscal policies work would be the following</u>:

-Government increases tax rate  

-Inflationary pressure decreases  

-Consumers have less money to spend  

-Producers manufacture fewer goods

Contractionary monetary policy is often applied <u>when the economy is suffering from inflationary pressure</u>. The central bank (U.S. Federal Reserve) will <u>slow down the monetary supply</u>. In turn, this raises the cost of borrowed money, which <u>decreases Gross Domestic Product and inflation</u>. Some negative side effects could be a higher unemployment rate.


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